To trade is to willingly give things or services and get other things or services in return. For example, a person giving a thing must find another person who wants to get that thing. The giver gets something back in return.
A trade is also called an exchange or a swap.
The things that are given from one person to the other are called goods.
Money can be given in return for a service or for a thing. If money is part of the trade, then the person who gives the money is buying, and the person who gets the money is selling.
A place where trading takes place is called a market.
When there is no money involved in the trade, the trade is called barter. If there is money involved in the trade, the trade is called a purchase. In the past people would barter to get what they wanted, instead of buying goods and services.
Economics includes the study of trade.
Trade occurs not just between people, but also between large companies and even countries. Governments sometimes take some of the money or goods involved trade between countries. This is a type of tax called a tariff. Smugglers try to trade without paying tariffs.
Free trade between two countries is when there are small or no tariffs, quotas, or other restrictions on trade.
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